Crypto currency market is trading in red today as crypto bulls continue to lose fundamental support and high impact news to retain recent gains. As Japan’s FSA denied considering Bitcoin ETH, market bulls which gained pace in early week lost foundation resulting in sharp decline and by European market session today Bitcoin and other major crypto currencies lost all gains made earlier this week and was back to price level seen during last weekend. While news hit market on possible move by Russian government to shift a major part of its Forex reserve to Bitcoin in a bid to escape from effect of US sanctions on Russian economy, market took no notice of it as report lacked official confirmation from Government representatives and investors are sore from being fooled over reports of Japan FSA considering Bitcoin ETF’s.
Lack Of Fundamental Support For Recovery Rally Results in Another Dead Cat Bounce
Crypto market continues to lose trading volume as investors turned cautious ahead of Ethereum’s upcoming Constantinople hard fork and have held back from placing major bets. Fund flow in market is also affected by profit booking activities as investors want to make the best before another bearish bout comes into effect given most of previous attempts by markets to scale psychological resistance turned out to be nothing more than dead cat bounce. As of writing this article, BTC/USD pair is trading at $3829.9 down by 5.83% on the day. Looking at the pair from technical perspective, Bitcoin is expected to continue suffering many loss and rebounds as the pattern has repeated many times in recent past owing to lack of fundamental support that could help the pair retain strong foot hold over $4000 mark which suggests that nothing much has really changed in market when looking from long term perspective.
Ethereum has suffered a far worse fate when compared to Bitcoin, in that ETHUSD pair has lost over 12% today and is well near $130 mark a psychological support level which if breached could push the pair to near or below $100 price level. Investors want to make best of recent bull run’s gains and are skeptical about market performance post network upgrade as this is the only major factor that has provided much of momentum in recent past and there are no other major events to push pair back above key resistance levels. ETHUSD pair is currently trading at $133.45 down by 12.45% on the day and is expected to decline further amid lack of fundamental support ahead of hard fork as most investors are expected to continue pulling out fund from the Altcoins.
This article was originally posted on FX Empire
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